Consumers can’t be bothered to shop for loans!
In today’s Internet driven, everything at your fingertips society, there is very little excuse for not being able to find a great deal when it comes to shopping for personal finance.
However, according to a new report over 60 percent of people who agree to a vast number of loan and personal finance products, do so without shopping around. According to statistics, only 10% of people refuse to accept the first quote they are offered and proactively search for a better deal. As a collective, British consumers are missing out on whopping potential savings of £300 million “every year”.
The most commonly sought after products, which consumers could be paying over the odds for, include car finance, home insurance and personal loans. It is important for consumers to understand that personal finance is one of the UK’s most competitive industries. As a result, numerous financial institutions and lending bodies will go to great lengths In order to better the competition.
On some occasions, particularly within the world of personal loans, providers have been known to offer loan plans below or in tandem with the current rate of inflation. This type of strategy would have been unheard of 10 years ago, as it means considerably reduced mark ups for the provider. However, a fiercely competitive market has forced such companies to go to great lengths, in order for their products to remain attractive. This equates to fantastic savings for the consumer, at the expense of slimmer margins for the provider.
In summary, it is very easy to take a laid back approach to your personal finances and to “just go with the first offer you receive” certainly saves the hassle of shopping around. However, when the definition of “shopping around” actually means a couple of clicks on your mouse button, then surely the potential savings are worth the time.
